Posts Tagged ‘Lien Content’

Huge Washington Mechanic Lien Case Accepted by Supreme Court for Review

On November 8, 2010        

The appellate court decision in Williams v. Athletic Field, Inc. was the shot heard around the world for construction lawyers and the construction industry in Washington state.

The court – three years after first deciding the case – revisited the decision and reversed itself, holding that the language acknowledging the lien claimant’s signature that is within the statute itself may not be enough to make lien claims valid.

The decision is a bit complex, but as we stated in our blog post on the topic, it confirmed that lien requirements in the state are hyper-technical and the lien form itself is important:  Washington Appeals Case Confirms Lien Requirements Are Technical.

Well, many folks predicted this would go to the Washington Supreme Court, but earlier in October we got confirmation.    The Washington Supreme Court blog posted that the Supreme Court agreed to hear the Athletic Field case in its September conference.

A decision, therefore, will be forthcoming, and we’ll keep you advised…

Posted in:     Lien Law Alerts  /  Tags: , , ,   /   Leave a comment

What Costs Can I Include in a Mechanics Lien?

On May 25, 2010        

I practice law, and focus on construction law, in the states of Washington, Oregon and Louisiana.    Whenever folks are looking to put together a mechanics lien, this is a question that is very frequently asked.  (Previously wrote about it here).

While the question seems quite simple, it’s actually a bit complicated.   And it’s a very sensitive question to boot.   The answer differs depending on which state’s law applies, and some states are more sensitive to the topic than others.   In some states, if the lien amount is listed incorrectly, or includes costs not allowed under law, it could invalidate the entire lien.

In other words, tread very carefully.

So, what is this question asking anyway?   Well, folks are typically looking to include two different costs into the amount of its lien.   First, the cost of filing the lien itself.  This may be the cost of an attorney, the filing fees with the county, or the cost of our service ($295).   Second is charged interest on the unpaid account.  Sometimes this is the state’s judicial interest, or interest allowed by contract.

Let me make something very clear:  This is an extraordinarily complicated question to answer on a general basis.  You should consult with an attorney to figure out exactly what costs you can and should and may include in your lien.

However, let me take a crack at trying to answer this question generally.

In Louisiana, Washington and Oregon, if someone wants a general rule, I always advise my clients to simply file the lien for the amount that is due under the contract, without any of the extras.  I advise this unless there is specific circumstances and law that allow them to do the contrary, and they know the law.  I advise this simply in an abundance of caution for these two reasons:

1) If you include it (the extra costs), and you cannot include it, it could invalidate the lien; and

2) if you do not include, it doesn’t mean you can’t collect it. It just means its not part of your lien, and you don’t have the lien against those particular funds (you still have any legal or contractual right to it).

Posted in:     Mechanic Liens, The Legal Corner  /  Tags: , , , , ,   /   5 Comments

What Costs / Labor To Include In Your Lien?

On February 15, 2009        

It’s been an interesting week on the web as it relates to mechanic’s liens, as I’ve run across a number of web posts about the types of services that can be included in a lien.

Let’s look at the matter theoretically.   Construction lien laws are normally drafted to protect contractors, who invest labor and expense into the improvement of a property.  However, since the laws also balance the property rights of persons or organizations, each state certainly does something to qualify what types of labor and expense can be represented in a lien, and which cannot.

The question here, therefore, is quite simple:   have you performed work or provided materials that can be the subject of a lien?

It’s one of the most important questions a contractor or supplier can ask when determining how to best collect on a non-paying account or project.   If you work does not qualify for a lien, for example, there is no need to even consider if notice is required and other lien filing requirements.

It’s important to consult the laws or your particular state to determine what type of materials and labor can be the subject of a lien, and which cannot.  However, two recently decided cases in Virginia and Kentucky are revealing of some general principals that are followed by most states.  The principal is essentially this:  you can only lien for labor and materials that actually go into improving the property.

What does this exclude?

In Virginia, Virginia Lawyers Weekly reports that a Hanover County Circuit Court invalidated a mechanic’s lien filed by a contractor that incurred costs in anticipation of construction of a steel building, but did not provide labor or materials actually employed in construction of the building.

The case is captioned Dallan Construction Co. v. Super Structures General Contractors, Inc, and can be downloaded here.

Similarly, in Kentucky, the Kentucky Court of Appeals held that “mowing, trimming, edging and street cleaning” did not “permanently improve the property,” and therefore, a mechanics lien was not allowed to be filed for the services provided.  That case is discussed at the South Carolina Community Association Law Blog, and is captioned Steeplechase Subdivision Homeowners Association, Inc. v. Thomas, Ky. Ct. App. 2008.

Posted in:     Mechanic Liens, The Legal Corner  /  Tags: , , , , , , , ,   /   4 Comments

Caution: Lien Laws in are Hyper-Technical

On December 29, 2008        

In most states, the liens laws are hyper-technical.   This means that the laws have many requirements, and that courts strictly construe the rules against the party filing construction liens.

This is true for nearly every state.

While laws across the nation provide lien rights to those in the construction industry, because of the power of these instruments most states require that the liens be filed in exact accordance with the law to be valid.

This is especially the case with regard to the required contents of a lien.

Each state has different requirements for what must be stated within a mechanic’s lien, and how that information must be stated.

Every state, for example, will require the claimant to identify the property being liened.  In Louisiana, Washington and Virginia, however, the law requires that the lien use the legal property description and not simply a municipal address.   The proper identification of property can be so important we’ve written an entire blog post about it here.

In Virginia, the laws are even stricter.   Because the Virginia lien law is land record based, the claimant is expected to perform a complete title search to acquire the exact legal owner and legal property description.   A lien that does not lien the exact owner, at the exact property for the exact amount due, can be deemed invalid by courts.

Zlien does this leg work for your company, helping your company properly prepare these important legal forms.   Our professional legal document preparers are familiar with the lien and notice forms in your state, and can help your company Lien Smarter.

Posted in:     Mechanic Liens  /  Tags: , , , , , , , , , , ,   /   1 Comment

Be Careful When Using Free Legal Forms

On December 26, 2008        

Gerard Simington with “FindAnAttorneyForMe.com” published an informative article that warns businesses about using free legal forms found on the internet.

The Internet has placed legal information and legal forms at our fingertips – and its easy to forget sometimes that the law is a very complicated subject, and legal forms are no exception.  While a legal form may seem simple on its face, the blanks can carry significant legal consequences.

It’s always great to hire an attorney to draft legal documents from scratch, or to “tweak” legal forms to fit your particular need.   The costs associated with legal counsel, however, are simply sometimes out of your business’ reach.

Legal Document preparation services like Zlien are perfect for these situations.  Our staffs of professionals are familiar with the forms that relate to your construction project, and we can help you draft & file your forms properly and avoid costly mistakes.

Posted in:     Construction News  /  Tags: , , , , , , , , , , , , , ,   /   1 Comment
Next Page »

Mechanic’s Lien Solution

  • The most potent tool you have to manage receivables is to preserve, perfect and enforce your mechanics lien and bond claim rights. But, it's so complex? Zlien is a revolutionary enterprise offering to monitor your lien deadlines and automatically file required documents.

Contact Zlien

  • 4819 Prytania Street
    New Orleans, LA 70115
    (866) 720-5436
    email: mail@zlien.com